how to build a rewards program in apparel. to build a rewar… · a loyalty program ensures...
TRANSCRIPT
How to build a rewards program in apparel.
Did you know that apparel businesses are perfect for rewards programs?
Apparel changes every season, with new products every 3
months. A loyalty program ensures customers return to
check out those products.
PRODUCTS CHANGEEVERY SEASON
Apparel is a super visual industry, making social media
extremely valuable. With a loyalty program you can reward
points for sharing on Facebook or Instagram.
SUPER VISUALINDUSTRY
Shoppers have the potential to be very high lifetime value
customers if you can get them to shop with you every season
instead of with competitors.
HIGH CUSTOMERLIFETIME VALUE
The apparel industry is one of the most competitive verticals in
ecommerce. This is because the barriers to entry over time have become
less and less, and shipping clothing is both easy and inexpensive. Low
entry barriers and high repeat purchasability have driven acquisition
costs through the roof. A rewards program bolsters your retention
efforts and drives down your acquisition costs.
It is estimated that the average
person spends 15% -23% of their
discretionary income on apparel
each year. That is a large chunk of
money per customer if you can
get them to shop exclusively with
you.
A loyalty rewards program not
only encourages shoppers to
return to your store, but also to
spend more per visit. In this guide
you will learn how to capture
more revenue and expand your
reach through loyalty.
of discretionaryincome on apparel.
Customers spend
15-23%
Low Competition High Competition
ProgramStrategy
Your brand is perfectly suitable to capitalize on the benefits of a loyalty rewards program.
Congratulations!
The apparel industry is well suited for ecommerce, as the combination of
high potential customer lifetime values and high purchase frequency
equate to profitable online business. Apparel is also easy to ship. Most
items can be shipped in bubble mailers, which means shipping is not
eating too heavily into your margins.
While the above combination makes apparel a very attractive industry
online, that also comes with increased competition. Amidst all of the
mid-sized and small retailers compelling with the world’s largest brands
online, the best way to survive all this competition is to invest in
retention efforts like customer loyalty and rewards.
customers will and hard to ignore. The strategy behind an effective
apparel loyalty program is to focus on expanding your reach through
visual channels (Facebook/Instagram), encouraging existing customers
to share and establishing a sense of community.
A loyalty program will help your apparel brand stand out amongst the
competition, expand your marketing reach, and boost your profitability!
ProgramObjectives
A rewards program creates a switching barrier that your
customers will find hard to ignore. The strategy behind an effective
apparel rewards program is to focus on expanding your reach through
visual channels (Facebook/Instagram), encouraging existing customers
to share their experiences, and establishing a sense of community.
A rewards program will help your apparel brand stand out amongst the
competition, expand your marketing reach, and boost your profitability!
You already have some profitable customers, but it’s always great to
have more! Providing potential customers with a loyalty program that
offers clear value will separate your brand from your competitors.
Getting more bang for your buck is always attractive, and demonstrates
a commitment to excellent customer service.
ACQUIRE
and redeem rewards will make your program more enticing, and keep
more shoppers actively engaged.
Brand advocates are an essential tool for promoting your business, but
they’re not always easy to come by. Rewarding your customers for both
sharing about their experiences with your products and referring friends
to your business is an excellent way to develop a relationship with your
key customer base. By actively investing in this relationship, you’ll be
building trust with your customers that can’t be outbid by competitors
who offer nothing more than a low price.
NURTURE
Outlining the purpose of your program will allow you to better track success and make valuable
changes later on.
Once you’ve got your customers hooked, it’s important to ensure they
stay there. Developing a reward program that recognizes the longevity
of your customer’s spending habits is vital to keeping them engaged and
satisfied with your products and services. Offering multiple ways to earn
RETAIN
Let’s talk apparel specifics & recommendations.
People like what other people like! We all want to be both
an individual and part of the herd. Show your shoppers that
your brand is part of a larger customer community. You can
do this by rewarding shoppers for referring friends, sharing
on social, and leaving reviews.
BUILD ACOMMUNITY
The apparel industry is all about being visual. You want
your shoppers to see all of your visual updates on Facebook
and Instagram, and the best way to ensure they see these is
to get them to follow or like you. Give your shoppers a few
reward points for subscribing to your social channels to
make sure they see all of your beautiful new products.
REWARD CUSTOMERSFOR BEING VISUAL
We’ve helped many apparel brands grow their business with rewards, including these amazing
programs:
www.shirtpunch.com www.getinkbox.com www.ivoryella.com
Looking good is at the core of every apparel business.
Therefore, you want your loyalty program to fit into your
current look and feel. Essentially, you want your program to
be part of your brand - not an afterthought. Be sure to style
up your program to look as good as the products you sell.
KEEP YOUR PROGRAMON BRAND
Apparel shoppers are generally concerned about things that
are hard to portray on your site. Some of these include: how
it fits, does it arrive as it appears, and the quality of the
garment. It is much easier to let previous shoppers share
their experience, so give your members extra points when
they leave a review of a product.
REWARD FORREVIEWS
Here is what your rewards program should rewardpoints for:
Earning Rewards
This type of reward is effective because it encourages members to
perform the most valuable action on your site - making a purchase! The
amount of points you offer will vary depending on your margins and
what your direct competitors are doing.
Why is this effective?
Customers will earn a certain number of points (or rewards currency) for
every dollar they spend or transaction they complete.
How does it work?
POINTS PER PURCHASE
The apparel industry is very visual. The best way to convince a shopper
to buy is to show them as much visual content as possible. When they
are subscribed to your social channels, it increases the amount of your
visual content they will see.
Why is this effective?
Most shoppers who have had a positive experience are willing to refer
their friends, however they seldom do. This is because they are not given
a reason to. Reward points for a referral and you will turn your existing
customer base into your most effective marketers!
Why is this effective?
Current members are rewarded for sharing your store with friends and
family. When they refer a friend, both your current customers and the
person they are referring get a reward, and you are rewarded with more
sales.
How does it work?
REFERRALS
Customers are rewarded points for subscribing to your social channels
such as Facebook and Instagram. They are also awarded points for
sharing your brand to their social networks.
How does it work?
SOCIAL SHARING
People like to know that other people have been happy with a decision.
Reviews create strong social proof that your shoppers will use to justify a
purchase. In this way, customer reviews become your online sales team!
Why is this effective?
Loyalty program members are rewarded points when they leave a review
of a product. You can limit how often they can be rewarded for doing
this to prevent spam.
How does it work?
REVIEWS
Having multiple ways to earn rewards makes your program more engaging, which ultimately
makes it more profitable.
Now for the fun part: redeeming rewards.
Customers always appreciate being rewarded with dollars off or a
promised discount in the future because it reinforces their decision to
purchase your products instead of someone else's. This method of
redemption is also very easy to explain and even easier to understand.
Why is this effective?
The following discounts are great rewards to consider when designing
your rewards program: fixed discount (dollars or percentage off), free
shipping, and store credit.
How does it work?
DISCOUNTS
Redeeming Rewards
These rewards work best within a tiered or customer group based
program. Offering these rewards only to those customers in higher tiers
is an excellent way to increase the elitism of your program and inspire
increased spending.
Why is this effective?
These rewards offer customers access to exclusive products and services
that would be otherwise unavailable to them. Some examples include
early access to new products, access to special events (product launches,
company functions, etc.) and products designed exclusively for program
members.
How does it work?
PERKS
A great way to leverage this type of reward would be to host a sample
party for your best customers. Inviting them to an event where they’re
given the opportunity to try a wide variety of your merchandise will
make your loyal customers feel appreciated and give them the
opportunity to discover their new favourite products.
Building a rewards program forapparel brandsisn’t rocket science.
for referring friends to your business to encourage
community.
REWARD YOURCUSTOMERS
which places excellent value and customer service at the
core of your program.
DEVELOP A PROGRAM STRATEGY
focusing not only on dollars spent but on the complete
experience.
PROVIDE MULTIPLE WAYS TO EARN REWARDS
and provide additional value in their day-to- day routines.
OFFER REWARDS THAT INSPIRE A SENSE OF ELITISM
by rewarding customers for referring friends and writing
product reviews.
BUILDCOMMUNITY
and increase your marketing and outreach efforts.
REWARD FOR VISUAL/SOCIAL SHARING
so that it becomes an integral part of your outstanding
customer experience.
BRANDYOUR PROGRAM
to inspire trust and reinforce the quality of your brand and
products.
REWARDSFOR REVIEWS
